An unexpected emergency can happen at any time. It is better to financially prepared for when your next financial emergency will occur than to be unprepared. Sometimes when an emergency happens and you need the funding, it is easier to plan for it if you have identified what you will use the money for in the first place. Three steps that you may consider towards building an Emergency Money Fund are:
First – Determine that you need to save 3 to 6 months of emergency cash that will cover your living expenses, food, housing, etc.
Second – Identify where you will save this money and who will have access to it (Savings Account, Home Safe, etc.).
Last – Make yourself accountable to depositing money often to cover those 3 to 6 month expenses in case they are needed.
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